Let’s start with the positive news. If you got monthly advanced Child Tax Credits during the final six months of 2021, you’ll need to submit your 2021 tax return to get the other half. Assume you had two children under the age of six and got $3,600 in the months of July and December. This year, you may anticipate an additional $3,600 in your tax refund. If you had children under the age of six and did not claim the Kid Tax Benefit on a monthly basis, you are owed the whole credit — $3,600 per child under the age of six, and $3,000 for each child aged six to seventeen.
However, you must first submit your tax return.
The IRS started delivering copies of Letter 6419 to parents who earned Child Tax Credit payments in 2021 earlier this month. The IRS gives all of the information parents or guardians need to submit their taxes and claim their Child Tax Credit correctly in the letter.
Why Letter 6419 matters
The number of advanced Child Tax Credit payments you received, as well as the number of children used to compute the amount issued, are detailed in Letter 6419. You’re in luck if your letter came with all of the necessary information. You’ll input those values on your tax return when required, thereby notifying the IRS that you’re on the same page.
What happens if the letter is incorrect?
If you haven’t gotten a letter from the IRS or if you have, but the information supplied by the IRS is incorrect, there may be a simple reason. Consider the following scenario:
You’ve relocated.
If you relocated between the end of 2021 and the beginning of this year, the IRS is likely to have your former address. If you haven’t received Letter 6419 by the time you’re ready to file your tax return, you may get the information in the letter by logging into your online IRS account, or you can contact the IRS by phone or mail. The IRS’s primary switchboard number is (800) 829-1040. If you choose to contact the IRS via letter, you can expect to get a response in approximately 30 days.
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The payment amount on Letter 6419 is incorrect.
The last Child Tax Credit check was likely returned to the IRS as undeliverable if you relocated in December. This is true whether the IRS sent you a paper check or tried to deposit a check into a bank account that was closed.
If this is the case, Letter 6419 may suggest that you received more than you really did. If that’s the case, go onto your IRS.gov account to see if they have the right information. If they have it correct on their website, they must have it correct in their system.
The number of dependents on Letter 6419 is incorrect.
Let’s imagine your letter reveals that the IRS calculated your payments based on the assumption that you have two children when you really have three. It’s critical to notify the IRS. If you obtained custody of, adopted, or gave birth to a kid in 2021, for example, it’s likely that they are unaware of the new addition to the family. Remember to claim the full Kid Tax Credit for any child that joined your household in the previous year.
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The conclusion of the tale is this: don’t take the information in Letter 6419 at face value. Compare it to your previous records. To get the money you’re owed, you’ll need to submit to the IRS with precise information.